PURPOSES, FORMULAS, AND HISTORICAL
CONTEXT OF IMPACT AID
The federal Impact Aid statute (Public Law 103–382, sections 8001– 8014, codified at 20 U.S.C. sections 7701–7714), first passed in 1950, was originally intended for the sole purpose of providing financial relief to local school districts that were burdened (“impacted”) by activities of the federal government. The rapid growth of U.S. military forces during the Korean War caused dramatic increases in the school-age populations of some communities around military bases. Military bases and other federal properties are not subject to local property taxes, which were the major source of revenue for local school districts. Congress concluded that activities on federal property placed an unfair burden on local school districts by bringing in additional children without increasing the local tax base.1
Today, compensation to local districts for the expense of educating federally connected children remains the primary purpose of the Impact Aid program.2 In addition, however, the 1994 reauthorization of the statute notes that the program is also intended “to help [federally connected] children meet challenging state standards.”3 Consistent with this new language, members of Congress who sup____________________
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Publication information: Book title: Impact Aid and the Education of Military Children. Contributors: Richard Buddin - Author, Brian P. Gill Ron - Author, W. Zimmer - Author. Publisher: Rand. Place of publication: Santa Monica, CA. Publication year: 2001. Page number: 5.
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